Conglomerate Adani Group today said it hopes to start production from the USD 10-billion Carmichael project in Australia by 2015, and expects it to reach its peak level of 60 million tonnes a year by 2022.
"We have made significant progress in the Carmichael project since we acquired the mine in 2010. The geotechnical field investigation for the project has been completed in a span of just nine months.
"The mine has an estimated reserve of 10 billion tonnes, making it the single largest coal tenement in the world," Adani Group Chairman Gautam Adani told reporters here.
Adani said that "production from the mine is likely to start from 2015 and is expected to reach its peak at 60 million tonnes a year by 2022 till the next 40 years". The coal from the mine would mostly be sent to India for Adani Group's captive needs.
The company is also looking to issue a USD 1.5 billion global bond and pare stake in the listed companies in the domestic market to raise funds for Australian project, he added.
The company has invested USD 3 billion in the Carmichael project, including USD 2 billion towards the acquisition of the Abbot Point Port and will invest another USD 7 billion over the next few years to develop the mines, expand the port capacity and laying the railway network.
Adani's international Business Head Harsh Mishra said the company may dilute stakes at the SPV level for both the port and railway projects to financial investors to finance the necessary infrastructure like laying of railway lines and developing roads.
The firm has appointed Moody's and S&P's for ratings.
Adani Power, a listed entity among two others within the Group, has currently 5,320 MW capacity and plans to take it to 20,000 MW by 2020. Adani may require 100 million tonne coal by then.
The group is operating Abbot Point coal terminal in Queensland which it had acquired in 2011 and is planning to increase its annual capacity to 85 million tonnes per year from current 55 million tonnes.
The coal from the Carmichael mine will be transported via the 400-km railway line to Abbot